Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)

Who is responsible for this tax?

When compressed natural gas (CNG) and liquefied natural gas (LNG) is sold or delivered into a motor vehicle’s fuel supply tank by a licensed CNG/LNG dealer, the dealer collects the tax. Those who deliver CNG or LNG from their own storage into their own vehicles are also required to be licensed CNG/LNG dealers.


Fifteen cents ($.15) per gallon.


When the CNG and LNG tax is paid on or before the due date, apply the following deduction:

Due Date

Licensed Dealers

Quarterly on 25th day of the month following the end of the calendar quarter:

  • April 25
  • July 25
  • Oct. 25
  • Jan. 25

Yearly (if qualified) on January 25 (Tax Code Sec. 162.362).

Interstate truckers (except IFTA licensed)

Yearly on January 25 for previous year (Tax Code Sec. 162.362).

Penalties and Interest

  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
  • Past due taxes are charged interest beginning 61 days after the due date.
  • To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $500,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
  • Check
$500,000 or more

Select one of these reporting methods:

TEXNET is the only acceptable payment method.

Additional Resources